Real Estate Investing 101

Hey Coach,

Real estate gets talked about like it’s easy money.
It’s not.

But done intentionally, real estate can become a powerful long-term asset - especially for coaches who value stability, cash flow, and diversification.

Let’s break down the three most common ways coaches get started in real estate:
1️⃣ Rental property
2️⃣ REITs
3️⃣ House hacking

Why Real Estate Belongs in the Conversation

Real estate offers:

• Income potential

• Inflation protection

• Diversification from stocks

• Tangible assets you can understand

It’s not an all-or-nothing play.
It’s one tool in the wealth toolbox.

Last Time the Market Was This Expensive, Investors Waited 14 Years to Break Even

In 1999, the S&P 500 peaked. Then it took 14 years to gradually recover by 2013.

Today? Goldman Sachs sounds crazy forecasting 3% returns for 2024 to 2034.

But we’re currently seeing the highest price for the S&P 500 compared to earnings since the dot-com boom.

So, maybe that’s why they’re not alone; Vanguard projects about 5%.

In fact, now just about everything seems priced near all time highs. Equities, gold, crypto, etc.

But billionaires have long diversified a slice of their portfolios with one asset class that is poised to rebound.

It’s post war and contemporary art.

Sounds crazy, but over 70,000 investors have followed suit since 2019—with Masterworks.

You can invest in shares of artworks featuring Banksy, Basquiat, Picasso, and more.

24 exits later, results speak for themselves: net annualized returns like 14.6%, 17.6%, and 17.8%.*

My subscribers can skip the waitlist.

Skip waitlist

_{*Investing involves risk. Past performance is not indicative of future returns. Important Reg A disclosures: masterworks.com/cd.}

1. Buying Rental Property

This is the classic approach: you buy a property and rent it out.

How it works

• Purchase a property

• Rent it to tenants

• Collect monthly rent

• Cover expenses and (hopefully) generate cash flow

Pros

✔️ Monthly income
✔️ Property appreciation over time
✔️ Tax advantages (depreciation)

Cons

❌ Requires capital and credit
❌ Property management (or management costs)
❌ Vacancies and repairs

Coach’s Tip:
Cash flow matters more than appreciation.
A “pretty” property that loses money is not an investment.

2. REITs (Real Estate Investment Trusts)

REITs let you invest in real estate without owning physical property.

How it works

• You buy shares of a REIT (like a stock)

• The REIT owns income-producing properties

• You receive dividends from rental income

Pros

✔️ Easy to buy and sell
✔️ No tenants, toilets, or repairs
✔️ Can invest inside retirement accounts

Cons

❌ Less control
❌ Subject to market volatility
❌ Dividends are taxable in brokerage accounts

Coach’s Tip:
REITs are a great way to get real estate exposure if you don’t want landlord responsibilities.

3. House Hacking (Coach Favorite)

House hacking means buying a property and living in part of it while renting out the rest.

Examples:

• Duplex, triplex, or fourplex

• Single-family home with roommates

• Home with a rentable basement or in-law suite

Why coaches love it

✔️ Low down payment options
✔️ Rental income offsets your mortgage
✔️ Easier to manage while living onsite

Coach’s Tip:
House hacking can dramatically reduce your housing cost - freeing up money to invest elsewhere.

The Numbers Matter (Always)

Before buying any property, run these numbers:

• Monthly rent vs mortgage

• Taxes + insurance

• Maintenance (budget ~5–10%)

• Vacancy risk

• Cash reserves

If the math doesn’t work on paper, it won’t work in real life.

Which Real Estate Path Is Right for You?

You don’t have to choose just one.

Final Whistle

Real estate investing isn’t about hype - it’s about fit.

✔️ Know your risk tolerance
✔️ Start with simple strategies
✔️ Don’t stretch yourself thin
✔️ Use real estate to support your bigger financial plan

Just like coaching, fundamentals win.

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Coach Mike Klinzing
Founder, Wealth4Coaches
"Coach smarter. Save better. Live freer."